LMC Insurance & Risk Management
  • About Us
    • Leadership
    • Wisconsin Office
    • Accessibility
  • For Business
    • Property Casualty
    • Employee Benefits >
      • Iowa Health Insurance Pool
      • Share to Compare
    • Financial Services
    • Surety Bonds
    • Risk Management
    • Cyber Security
    • Executive and Owner Risk Management
  • Industries
    • Construction
    • Healthcare
    • Higher Education and Nonprofits
    • Hospitality
    • Manufacturing
    • Petroleum
  • Personal
  • Contact Us
    • Report A Claim
    • Iowa
    • Wisconsin
  • Careers
    • Open Positions
  • Online Tools
  • Blog
  • About Us
    • Leadership
    • Wisconsin Office
    • Accessibility
  • For Business
    • Property Casualty
    • Employee Benefits >
      • Iowa Health Insurance Pool
      • Share to Compare
    • Financial Services
    • Surety Bonds
    • Risk Management
    • Cyber Security
    • Executive and Owner Risk Management
  • Industries
    • Construction
    • Healthcare
    • Higher Education and Nonprofits
    • Hospitality
    • Manufacturing
    • Petroleum
  • Personal
  • Contact Us
    • Report A Claim
    • Iowa
    • Wisconsin
  • Careers
    • Open Positions
  • Online Tools
  • Blog

Welcome to the LMC Blog

Despite risks, few small businesses worry about data breaches

1/28/2019

 
Despite Risks, Few Small Businesses Worry about Data Breaches | LMC
As the number of data breaches involving smaller businesses continues to grow, a survey by The Hartford finds 85% of small business owners said a potential breach of their own data was unlikely, and many are not implementing simple security measures to help protect their customer or employee data.
​
"Most of the business owners surveyed believe they are not at risk, when in fact smaller businesses are increasingly being targeted," said Lynn LaGram, assistant vice president of small commercial underwriting at The Hartford. "As cyber criminals set their sights on smaller firms, it is important for business owners to take proactive measures to protect data and minimize the likelihood of a breach."

Nearly two-thirds of business owners surveyed agreed that a data breach violates trust and would jeopardize their relationships with customers, patients, and employees. More than a third said they have a more negative opinion of companies that have recently experienced a breach, based on the companies' handling of the breach.

About a third of business owners said they would have difficulty complying with laws requiring that they notify the affected parties if a breach were to occur, and nearly half acknowledge it would be impossible for a small business to completely safeguard customer, patient, or employee data
.
As part of the survey, The Hartford asked business owners which types of data protection best practices they had adopted.
  • Lock and secure sensitive customer, patient or employee data (48%)
  • Restrict employee access to sensitive data (79%)
  • Shred and securely dispose of customer, patient or employee data (53%)
  • Use password protection and data encryption (48%)
  • Have a privacy policy (44%)
  • Update systems and software on a regular basis (47%)
  • Use firewalls to control access and lock-out hackers (48%)
  • Ensure that remote access to their company's network is secure (41%)
In addition to these methods, businesses of any size that store sensitive employee or customer information should consider purchasing insurance to help them respond to and recover quickly from a breach.

Data breach coverage is typically issued as an endorsement to your company's business owners' policy and will generally provide coverage for expenses and legal liability resulting from a breach. Some carriers also offer access to services to help them comply with data breach notification laws.

Companies that store sensitive client or patient data, such as those in healthcare, financial or professional services, and restaurants and retailers with the large volume of credit-card information they process, should consider this coverage.
​
Data breach insurance will often include:
  • First-party coverage for response expenses, including legal and forensic services, notification expenses, crisis management and good-faith advertising expenses;
  • Third-party coverage for defense and liability, including defense costs, civil awards, and settlements or judgments that an insured is legally obligated to pay;
  • Consultation, including help with breach notifications.

Comments are closed.
    We're here to help.
    ​1-800-677-1529
    ​
    Email Us
    Follow @lmc_insurance

    Categories

    All
    Compliance
    Construction
    COVID 19
    COVID-19
    Cyber Security
    Directors And Officers
    Employee Benefits
    Executive Benefits
    Healthcare
    Higher Education
    Human Resources
    Manufacturing
    News
    Personal Insurance
    Property And Casualty
    Risk Management
    Wellness
    Workers Compensation

    Archives

    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    April 2018
    March 2018
    January 2018
    December 2017
    November 2017
    October 2017
    August 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017

    While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or change circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
LMC Insurance & Risk Management
​About   |   Blog   |   Contact

Iowa
4200 University Ave, Suite 200 
West Des Moines, IA 50266-5945
Wisconsin
8500 Greenway Blvd., Suite 201
​Middleton, WI 53562
 © 2021 LMC Insurance & Risk Management. All rights reserved. Privacy policy.